Soundrop Raises $3 Million
Last year Spotify announced that they opened their platform to applications. Soundrop is a Spotify app company that creates “listening rooms” and a social jukebox-style service for Spotify users. The company has raised $3 million from Northzone, an investor that put money into Spotify. Soundrop launched in January 2012, but they are seeing some early traction. Thousands of listening rooms are being created. Soundrop CEO and co-founder Inge Sandvik said that the new funds will be used to develop their product.
Soundrop will expand their own catalog of listening rooms and users. Currently they have 7,000 rooms and counting with 60 million songs and 3.3 million listening sessions logged. They are developing commercial services in partnership with labels, venues, etc.
“If Twitter can make a billion dollars on placement of tweets, will we also be able to make money on helping artists and labels reach out to their fans,” stated Sandvik.
Soundrop has already partnered with labels like Universal Music where one of the rooms for dance music DJs Sebastian Ingrosso & Alesso hit 28 million OTS users. Other official listening rooms were created for Carrier Underwood, Kelly Clarkson, The Fray, etc.
Soundrop is hiring new people too. “We need more hands on deck,” said Sandvik. They hired a designer and front-end developer. Soundrop also opened offices in Berlin and Stockholm. “We have a lot of business coming up now with the labels in New York and London.”
Torleif Ahlsand of Northzone will become chairman of the board at Soundrop. “We’re big believers in services that are social and scalable by design, and on top of it are helping enrich the music ecosystem,” said Ahlsand. “Soundrop builds brand value and consumption opportunities for artists and labels, whilst creating a more fun listening experience for the consumer.”This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry